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February 28, 2014updated 04 Apr 2017 2:28pm

Invesco Perpetual makes major change to charging structure

Invesco Perpetual is set to slash annual management charge for investors across its open-ended range of funds and replace it with a single ongoing charge, called the fund management fee.

By Verdict Staff

Invesco Perpetual is set to slash annual management charge for investors across its open-ended range of funds and replace it with a single ongoing charge, called the fund management fee.

The new charge, which is equivalent to the ongoing charge specified in the funds’ Key Investment Information Documents, will come into effect on 1 April.

In addition, the new charge will include the management of the fund, administration costs, costs for maintaining the share register and fund governance charges.

According to Invesco, the move will enable investors to understand the costs they invest and will not result in any additional charges.

Under the new structure, Invesco’s 1.5% AMC on an equity fund will be replaced with an ongoing charge at around 1.69%.

The new fund management fee will include all the existing charges which already come out of the fund after replacing AMC.

However, trading charges will not be included within the fund management fee and portfolio transaction costs will be applied separately, as they cannot be predicted earlier.

Ian Trevers, head of UK retail at Invesco Perpetual, said: "The changes would help to simplify the overall cost for end investors. We think the days of AMC comparisons are numbered. It is consistent with their direction of travel."

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